New South Wales Consolidated Acts

WESTERN LANDS ACT 1901 - SECT 35K

35K Transfers under legal process etc

(2) Any mortgagee who has under the powers of the mortgage submitted a lease under this Act, in respect of which the condition of residence remains unfulfilled, for sale by public auction, and any execution creditor who has seized under process of any court any such lease, if the mortgagor’s or debtor’s interest in the land is not then sold to a bona fide purchaser, may, in the prescribed manner, go into possession of the land and the condition of residence shall for a period of twelve months after the commencement of such possession or for such further period as may be approved by the Minister be deemed to be performed, if a deputy of such mortgagee or execution creditor, to be approved by the Commissioner, resides upon the land.
The mortgagee or execution creditor shall, within such period or further period as aforesaid, sell the mortgagor’s or debtor’s interest in the land to a bona fide purchaser, who thereafter shall be subject to all conditions which affected the original holder, and in default of such sale the lease shall be liable to be forfeited:
Provided however that:

(a) any mortgagee or execution creditor before proceeding under this subsection shall register at the office of the Commissioner the total amount of the mortgagee’s mortgage or the creditor’s judgment debt and other particulars as prescribed, and thereafter any person may before such forfeiture as aforesaid apply to the Commissioner to purchase the said lease for the amount of such debt; and the Commissioner may grant such application, and upon payment to the mortgagee or execution creditor of the amount then due the applicant shall become the holder of the lease of such land free of such debt, but subject to all conditions attaching to such land which remain to be performed,

(b) any mortgagee or execution creditor shall not take proceedings under this subsection unless the mortgagor has been in default for one year, or in the case of such creditor until one year after judgment has been signed.